NYTimes.com Article: Delta Has Fourth-Quarter Loss

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Delta Has Fourth-Quarter Loss

January 17, 2003
By THE ASSOCIATED PRESS






ATLANTA, Jan. 16 (AP) - Delta Air Lines reported here today
that it had lost $363 million in the fourth quarter,
attributing this to lingering effects of the terrorist
attacks in 2001 and the lagging economy.

The loss was equivalent to $2.98 a share, compared with a
fourth-quarter loss of $734 million, or $5.98 a share, in
2001. Excluding special items, Delta said it lost $230
million, or $1.90 a share. On that basis, analysts surveyed
by Thomson First Call had predicted a loss of $2.27 a
share.

Revenue increased to $3.31 billion from $2.86 billion a
year earlier.

Special charges included $1.6 billion related to changes in
the pension plans and $80 million for severance and related
costs associated with job reduction.

For the year, Delta, the nation's third-largest airline,
had a net loss of $1.27 billion; in 2001, it lost $1.22
billion. Revenue for the year was $13.3 billion, down from
$13.9 billion in 2001.

Delta said it ended the fourth quarter with $2.6 billion on
hand, and expected to be able to meet its debt obligations.


The chief financial officer, M. Michele Burns, said the
company's turnaround plan included cutting costs by 15
percent over the next three years. Delta has eliminated
16,000 jobs since September 2001.

For now, more job cuts are not planned, Ms. Burns said,
adding, "At this point, we have right-sized our work
force."

The outlook for 2003 is not much better. As a result of a
50 percent increase in fuel costs, Ms. Burns said the
company expected a loss this quarter similar to the first
quarter of 2002, when it lost $2.90 a share.

http://www.nytimes.com/2003/01/17/business/17DELT.html?ex=1043812086&ei=1&en=33788e4810f18f7e



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